On dissolution, how will you deal with partner’s loan if it appears on the (a) assets side of the balance sheet, (b) liabilities side of balance sheet.

Explanation

(a) once Partner’s loan is given on the assets aspect of the record it's shown on the method of accounting of the Partner’s Capital A/c.

(b) once Partner’s loan is given on the liabilities aspect of the record, it's shown singly below Partner’s Loan A/c and from there it's paid off.